Section 49 of CGST Act

Payment of Tax, Interest, Penalty and Other Amounts

 

• Enforced with effect from 1-7-2017

 

 

Section 49(1)

 

Every deposit made towards tax, interest, penalty, fee or any other amount by a person by internet banking or by using credit or debit cards or National Electronic Fund Transfer or Real Time Gross Settlement or by such other mode and subject to such conditions and restrictions as may be prescribed, shall be credited to the electronic cash ledger of such person to be maintained in such manner as may be prescribed.

 

Section 49(2)

 

The input tax credit as self-assessed in the return of a registered person shall be credited to his electronic credit ledger, in accordance with section 41 or section 43A, to be maintained in such manner as may be prescribed.

 

[Substituted for "section 41" by the Central Goods and Services Tax (Amendment) Act, 2018, with effect from a date yet to be notified.

Words "or section 43A" omitted by the Finance Act, 2022, w.e.f. 1-10-2022.]

 

 

Section 49(3)

 

The amount available in the electronic cash ledger may be used for making any payment towards tax, interest, penalty, fees or any other amount payable under the provisions of this Act or the rules made thereunder in such manner and subject to such conditions and within such time as may be prescribed.

 

Section 49(4)

 

The amount available in the electronic credit ledger may be used for making any payment towards output tax under this Act or under the Integrated Goods and Services Tax Act in such manner and subject to such conditions and restrictions and within such time as may be prescribed.

 

[Words "and restrictions” inserted by the Finance Act, 2022, w.e.f. 1-10-2022].

 

Section 49(5)

 

 The amount of input tax credit available in the electronic credit ledger of the registered person on account of–

 

a. integrated tax shall first be utilised towards payment of integrated tax and the amount remaining, if any, may be utilised towards the payment of central tax and State tax, or as the case may be, Union territory tax, in that order;

 

b. the central tax shall first be utilised towards payment of central tax and the amount remaining, if any, may be utilised towards the payment of integrated tax;

 

c. the State tax shall first be utilised towards payment of State tax and the amount remaining, if any, may be utilised towards payment of integrated tax.

 

Provided that the input tax credit on account of State tax shall be utilised towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax;

 

 

[Inserted by The Central Goods and Services Tax (Amendment) Act, 2018 w.e.f. 01-02-2019].

 

d. the Union territory tax shall first be utilised towards payment of Union territory tax and the amount remaining, if any, may be utilised towards payment of integrated tax:

 

Provided that the input tax credit on account of Union territory tax shall be utilised towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax;

 

[Inserted by The Central Goods and Services Tax (Amendment) Act, 2018 w.e.f. 01-02-2019].

 

e. the central tax shall not be utilised towards payment of State tax or Union territory tax;

 

f. the State tax or Union territory tax shall not be utilised towards payment of central tax.

 

Section 49(6)

 

The balance in the electronic cash ledger or electronic credit ledger after payment of tax, interest, penalty, fee or any other amount payable under this Act or the rules made thereunder may be refunded in accordance with the provisions of section 54.

 

Section 49(7)

 

All liabilities of a taxable person under this Act shall be recorded and maintained in an electronic liability register in such manner as may be prescribed.

 

Section 49(8)

 

Every taxable person shall discharge his tax and other dues under this Act or the rules made thereunder in the following order, namely: –

 

a. self-assessed tax, and other dues related to returns of previous tax periods;

 

b. self-assessed tax, and other dues related to the return of the current tax period;

 

c. any other amount payable under this Act or the rules made thereunder including the demand determined under section 73 or section 74 or section 74A.

 

[Inserted by The Finance (No. 2) Act, 2024 w.e.f. 01-11-2024].

 

Section 49(9)

 

Every person who has paid the tax on goods or services or both under this Act shall, unless the contrary is proved by him, be deemed to have passed on the full incidence of such tax to the recipient of such goods or services or both.

 

Section 49(10)

 

A registered person may, on the common portal, transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger under this Act, to the electronic cash ledger for, -

 

(a) integrated tax, central tax, State tax, Union territory tax or cess; or

 

(b) integrated tax or central tax of a distinct person as specified in sub section (4) or, as the case may be, sub-section (5) of section 25,

 

in such form and manner and subject to such conditions and restrictions as may be prescribed and such transfer shall be deemed to be a refund from the electronic cash ledger under this Act:

Provided that no such transfer under clause (b) shall be allowed if the said

registered person has any unpaid liability in his electronic liability register.

 

Section 49(11)

 

Where any amount has been transferred to the electronic cash ledger under this Act, the same shall be deemed to be deposited in the said ledger as provided in sub-section (1).

 

Section 49(12)

 

Notwithstanding anything contained in this Act, the Government may, on the recommendations of the Council, subject to such conditions and restrictions, specify such maximum proportion of output tax liability under this Act or under the Integrated Goods and Services Tax Act, 2017 (13 of 2017) which may be discharged through the electronic credit ledger by a registered person or a class of registered persons, as may be prescribed.

 

[Inserted by the Finance Act, 2022, w.e.f. 1-10-2022].

 

Explanation: -

For the purposes of this section, —

 

a. the date of credit to the account of the Government in the authorised bank shall be deemed to be the date of deposit in the electronic cash ledger;

 

b. the expression, —

 

i. tax dues means the tax payable under this Act and does not include interest, fee and penalty; and

 

ii. other dues means interest, penalty, fee or any other amount payable under this Act or the rules made thereunder.

 

 

• See also –

Rule 85 of the CGST Rules, 2017;

Rule 86 of the CGST Rules, 2017;

Rule 87 of the CGST Rules, 2017;

Rule 88 of the CGST Rules, 2017;

Rule 89(1) of the CGST Rules, 2017; and

Form Nos. GST-PMT 1 to GST-PMT-9, GST RFD-01 and GST RFD-01A of the CGST Rules, 2017.

 

• Sub-sections (10) and (11) inserted by the Finance (No. 2) Act, 2019, w.e.f. 1-1-2020.

 

• Substituted by the Finance Act, 2022, w.e.f. 5-7-2022.

 

Prior to its substitution, sub-section (10) read as under:

 

“A registered person may, on the common portal, transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger under this Act, to the electronic cash ledger for integrated tax, central tax, State tax, Union territory tax or cess, in such form and manner and subject to such conditions and restrictions as may be prescribed and such transfer shall be deemed to be a refund from the electronic cash ledger under this Act.”